Canaccord Genuity nudges up target price on Totally

by | Mar 7, 2022

Analysts at Canaccord Genuity slightly raised their target price on healthcare services provider Totally from 60.0p to 70.0p on Monday after the group’s “immediately earnings enhancing” acquisition of Pioneer Health Care for up to £13.0m.
Canaccord Genuity stated its 2022-24 earnings per share estimates had increased by 3.0%, 34.6%, and 37.5%, respectively, to reflect the deal, leading it to also reiterate its ‘buy’ rating on the stock.

The Canadian bank said that Pioneer, a leading provider of NHS secondary care, added to the group new outsourcing capabilities and complementary insourcing services across a wide range of treatments including orthopedics, pain management, and spinal surgery. It is listed on key national frameworks and holds contracts with NHS Foundation Trusts and CCGs primarily across the North of England that will enhance the group’s footprint.

“Strategically, Pioneer and Totally Healthcare will be combined to create a stronger offering under the Pioneer brand, providing a significant opportunity to leverage AQP status across an enhanced range of services throughout the UK and Ireland,” said Canaccord.

“We believe Totally is well placed to secure future growth as a result of this strengthened proposition, focussing on areas where demand for services is outstripping supply with NHS waiting lists at record highs.”

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